The novel is narrated by Manny, a one-armed computerman whose accidental discovery of the self-awareness of an intelligent computer ignites a revolution against the hated Lunar Authority. The computer, dubbed Mike (after Mycroft Holmes[?], brother of Sherlock Holmes) assumes the nom de guerre of Adam Selene, chairman of the revolution. The wise Professor de la Paz (Bernie), the beautiful rabble-rousing Wyoming Knott (Betty) and Manny (Bork) form the top-level cell in a plot with their fellow Loonies to liberate the Moon from Earth's control. Hazel Stone, a young girl "with no cushions" leads the Baker Street Irregulars (and later becomes Grandmother Hazel in The Rolling Stones).

The book is the origin of the acronym TANSTAAFL ("There Ain't No Such Thing As A Free Lunch"), and helped popularize the constructed language Loglan, which is mentioned in the story as being used for precise human-computer interaction.

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